41) Answer the following a) Fashion is a very seasonal business. At the end of a season, if merchants have excess inventory on hand, they often mark it down. What impact will the mark down have on the merchant's inventory turnover ratio (increase it or decrease it)? Why? b) Listed below is Pepsi's (the snack and beverage company) inventory turnover for its most recent 5 years. Looking at the overall trend from 2015 to 2019, what does that trend tell you about Pepsi? What does this trend tell you about the performance? Would you invest in Pepsi based on these results? Year 2019 2018 2017 2016 2015 Inventory Turnover 10.37 9.8 9.43 8.94 8.45 42) Recently, a share of Coca-Cola stock sold for about $43 a share. It's earnings per share at that time was $0.29 for the year. At the same point in time, a share of Pepsi stock sold for about $109 a share and Pepsi's earnings per share was $3.38. a) Calculate the PE ratio for each company, showing all work. b) Compare the 2 companies, indicating which is more profitable and which seems to be perceived as having greater growth potential. Is it profit or growth potential that makes Pepsi's stock price so much higher than Coke's? How can you tell? Explain